LIME About To Quit Jamaica?

Telecommunications provider LIME is being rumoured to calling it quits in Jamaica. The British parent company Cable and Wireless (C&W) plc was reported to be shutting down the operations in light of the difficult regulatory environment in Jamaica.

LIME of course in its last financial year reported losses in excess of  SIX BILLION Jamaican dollars after taxes.  Their subscription numbers have been struggling since Digicel began operations in Jamaica 2001.

Digicel quickly overtook the Incumbent monopoly Cable & Wireless and now boasts subscription of over 2.1 million in a population of little over 2.8 million people.

LIME in effect is result of the re-branding and fighting strategy of the Cable & Wireless Jamaica monopoly that we had grown to hate.  Are we heading towards another monopoly?

We recall in recent weeks the announcement by Digicel Jamaica that it will shut down its Claro operations migrating existing subscribers to the Digicel network.  This move was said to have been cleared by former Prime Minister Andrew Holness in his brief role as head of state.  The deal when announced by former Prime Minister Bruce Golding in parliament on August 30, 2011, stipulated that Digicel Jamaica maintain separate networks.

LIME Jamaica was of course Incensed by the announcement that they would adjust the original agreement and former Prime Minister Holness has come under intense criticism.  We believe he has since apologized for the lack of transparency in the agreement.

As it relates to the rumours we are left in a bind, because the indicators would indeed favour a pull out leaving us where we started, with a MONOPOLY.

In a Jamaica Observer story, LIME Chairman Chris Dehring categorically denied the rumours.  The managing director also made strong denials, intimating that LIME is fully committed to Jamaica and is here for the long run.

What are your thoughts on the Merger agreement?  Do you think LIME can survive in the current regulatory environment?

FULL Jamaica Observer story